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Mine Restart Summary
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QR Property Summary
The QR Mine continues to be the main focus for Cross Lake Minerals Ltd. with the commissioning of mine operations commencing in September 2007. The QR Property is located in central British Columbia, 58 kilometres southeast of Quesnel, B.C., within the Cariboo Mining Division. Cross Lake acquired 100% interest in the property on April 8, 2004 from Kinross Gold Corporation.
The property was explored and drilled continuously until 1994 by various owners. Following a positive feasibility study in 1994, Kinross began construction of a 900 tonnes/day mill and mine. Kinross opened the QR Mine with projected 5-year life at 900 tonnes/day. Capital costs were estimated at over $40 million. Mining of the Main Zone open pit, the Midwest Zone underground and from the West Zone starter pit continued until 1998.
Mining operations were suspended in February of 1998 and milling was suspended in April after processing stockpiled ore. Kinross reported processing 1.06 million tonnes averaging 4.1 g/t gold, with 118,004 ounces of gold produced.
The operating plan for the QR Mine anticipates the development initially of the Northwest Zone by open pit mining and subsequently the West and Midwest Zones by underground mining. Future operations will develop the extension of the Midwest Zone at depth, the North Zone and additional deposits that may be present around the balance of the QR Intrusive contact.
The operating permit was received from the British Columbia Government in December 2006. The Mill and related surface facilities have now being rehabilitated with no serious problems. The costs of the rehabilitation was higher than was projected, which was largely due to unforeseen repairs and improvements that could not be predicted without the benefit of active operating conditions and a change of scope related to the tailings damn, a 42-man camp and all support facilities has been installed along with administration and operations facilities.
Construction related to the mill, tailings containment and initial mine development was largely completed on schedule in August. Mining operations of the Northwest pit commenced in August. In addition access to the West Zone for drilling and development is well underway and the Midwest Zone has been rehabilitated for production. Future operations plan for mining from the Midwest Zone, West Zone and ultimately the North Zone.
The first mill operations commenced in late August but were in turn delayed due to problems with the electric power distribution apparently related to the installation of the 29 kilometer hydro line by BC Hydro and the installation of hydro power to the mine site. This problem affected only the ball mills and was ultimately solved but did affect operations for approximately six weeks. Unfortunately the delay in start up and the extra costs involved affected both the capital cost of the project and the Company's working capital position.
Mill and mine operations have continued since late November, which has resulted in operations commencing in winter conditions. While winter operations are historically more difficult, the operation improved throughout December and gold shipments are being made on a regular basis.
As part of the ongoing efforts to increase the current resource base at the QR Mine underground development of the North Zone has been completed and underground drilling commenced in November 2007. The North Zone is an extension of the Main Zone and as it is not limited by faulting is the largest Zone known on the Property. Historic drilling has confirmed that the Zone contains several areas of the typical QR gold mineralization and as such the potential to add significantly to the known gold resource.
The Company is looking forward to a successful year of operations in 2008 and to the growth in both the resource base and value of the project as drilling and development of the North Zone and exploration of the Property continues.
Project Maps
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) North Zone Mining Gear |
) Power line up North side of River to Mill |
Power line crossing the Quesnel River |
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) QR Mine - Air Photo |
) QR Mine site and Tailings Facility |
) QR 800 Tonne per Day CIP Mill |
) QR Mine 42-man bunkhouse |
) QR Minesite from beside tailings dam |
) Scooptram going underground at the North Zone |
) Mill Pumping Station |
) NW zone stripping of overburden for mining preparation |
) Business end of jumbo North Portal |
) QR Winter Diamond Drilling |
){kind=spacer} CAT clearing bottom of NW |
) Surface Diamond Drilling - Midwest Zone |
) North Portal |
) North Zone Portal construction |
) Scoop tram north portal |
) Scoop tram north portal |
) North Zone Portal |
) Drilling at West Zone Portal |
) Leif at North Portal adit |
) Qtz fsp vein 0+120 North Portal |
) Main Street Mining bolting |
) West Zone jumbo drilling |
) Main Street Mining bolting in North Portal |
) North Zone Jumbo |
Location Map QR Property Porcher Island Property Cariboo Property
Copyright © 2006 Cross Lake Minerals Ltd. All Rights Reserved.